Back to top

Image: Bigstock

Palantir Technologies Inc. (PLTR) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Palantir Technologies Inc. (PLTR - Free Report) closed the latest trading day at $17.33, indicating a -1.53% change from the previous session's end. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.

The company's stock has climbed by 1.09% in the past month, falling short of the Business Services sector's gain of 1.26% and the S&P 500's gain of 2.08%.

Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2024. The company is expected to report EPS of $0.08, up 100% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $603.48 million, showing a 18.65% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Palantir Technologies Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Palantir Technologies Inc. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Palantir Technologies Inc. is presently being traded at a Forward P/E ratio of 59.92. This indicates a premium in contrast to its industry's Forward P/E of 24.81.

Investors should also note that PLTR has a PEG ratio of 1.01 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.53 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Palantir Technologies Inc. (PLTR) - free report >>

Published in